Unilever: UBS wonders about mergers and acquisitions
(CercleFinance.com) - This morning UBS confirmed its buy rating on the Unilever share, with the head of the Anglo-Dutch consumer goods giant set to leave the company.
However, the broker maintains its 12-month target price at 51 euros, which means upside potential of less than two euros.
Thus, the group's CEO Paul Polman will be replaced by Alan Jope on 1 January, after his stint as President of Beauty & Personal Care since 2014, which of course is "Unilever's largest division," UBS says. This comes as no surprise, with this change widely expected, analysts say, who believe that the candidate selected from within the group's ranks is reassuring - especially relative to the group's 2020 targets.
"In recent years," UBS says, "Unilever has been a prolific acquirer of small assets and most of these acquisitions have taken place in the Beauty & PC division." It has also entered the prestige beauty category. In this context, investors are expected “to debate the merits" of such an M&A strategy "more openly".
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
However, the broker maintains its 12-month target price at 51 euros, which means upside potential of less than two euros.
Thus, the group's CEO Paul Polman will be replaced by Alan Jope on 1 January, after his stint as President of Beauty & Personal Care since 2014, which of course is "Unilever's largest division," UBS says. This comes as no surprise, with this change widely expected, analysts say, who believe that the candidate selected from within the group's ranks is reassuring - especially relative to the group's 2020 targets.
"In recent years," UBS says, "Unilever has been a prolific acquirer of small assets and most of these acquisitions have taken place in the Beauty & PC division." It has also entered the prestige beauty category. In this context, investors are expected “to debate the merits" of such an M&A strategy "more openly".
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.